The company was founded in 1939 in Pfaffenhausen, Germany as "Auto RUF" by Alois Ruf Sr. as a service garage and was eventually expanded to include a full-service gas station in 1949. Ruf began experimenting with vehicle designs of his own in the late 1940s, and in 1955 designed and built a tour bus, which he marketed around Germany. The positive response it received led to Ruf expanding his business again by starting his own separately owned bus company.